multiple choice 1. What is the difference between “Absorption costing”, “Variable costing” and “Throughput costing”? to. Under Variable costing, fixed manufacturing costs are NOT inventoried b. Under Throughput costing, only direct raw material costs are inventoried c. Both "a" and "b" are correct d. Neither "a" nor "b" are correct 2. If a manufacturing company does NOT have inventories, the difference between operating income under absorption costing and operating income under variable costing will be: to. equal to the variable overhead that the company incurred. b. equal to the fixed overhead that the company incurred
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
multiple choice
1. What is the difference between “Absorption costing”, “Variable costing” and “Throughput costing”?
to. Under Variable
b. Under Throughput costing, only direct raw material costs are inventoried
c. Both "a" and "b" are correct
d. Neither "a" nor "b" are correct
2. If a manufacturing company does NOT have inventories, the difference between operating income under absorption costing and operating income under variable costing will be:
to. equal to the variable overhead that the company incurred.
b. equal to the fixed overhead that the company incurred
c. equal to the sum of fixed overhead and incurred variable overhead
d. neither, both amounts will be equal
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